FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The New Zealand Small Business Loans
Let me know about the New Zealand Small Business Loans
New Zealand unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
What is what makes the Unsecured Loan different from an ordinary business loan?
You can apply for this Small Business Loan in under 10 minutes on the internet or over the phone, receive an instant response and funds may be on your account within 24 hours. Traditional company loans have an annual interest rate as well as other fees and charges. Our business loan is a loan that is priced upfront which means you be aware of the total amount payable including any fees, charges or charges. Then, it is divided into weekly or daily installment amount.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for almost any business need, such as cash flow management, business renovations, marketing to purchase inventory or new equipment, for general working capital, and much more. The loan is not available for personal purposes.
About larger New Zealand Business Loans
What is the Larger New Zealand Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed with a maximum of 36 months. The repayments are made weekly or fortnightly to work with the flow of cash.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan in this amount, your company needs to be in operation for at least 3 years with an annual turnover of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
How can the funding be utilised?
A Larger Business Loan can be used for almost all company reason, such as company renovations, to purchase equipment or inventory, as general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is required for funding of more than $150,000. It’s as a result of an charge on assets, and may be registered on the PPSR or registering a caveat.
A personal or director’s ensure is a promise to repay credit that is general in nature, rather than defining the security of a specific asset. The person signing the guarantee is personally liable in the event that the company lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including objects or assets). The PPSR grants the priority of personal property granted according to the date a security interest that is registered.
Caveats are legal document filed to offer the public notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re applying for larger company loans that is greater than $250,000 we may be able to provide a preliminary pre-approval to help smooth out the process. It is possible to apply for this without credit checks and within six hours of your initial application. The pre-approval is based upon an initial evaluation that involves you answering a few financial health checks. It is in no way an offer, nor is it a guarantee of financing. The approval of a conditional loan is subject to a full credit assessment and any offer you might receive could be subject to different conditions.
Application process
Are I eligible for funding?
You are eligible to apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and easy. Simply complete the online form in few minutes and a dedicated company loan specialist will call you to guide you.
To apply for up to $100,000, you’ll need the right identification documents (valid Driver’s Licence) and an NZBN/IRD that is valid and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K – $500K: Application details including credit consent twelve months bank statement, an IRD statement, last 2 years finalised financial statements, as well as interim financials from the current financial year as well as Aged Payables and Receivables Summary.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) we can often offer a response in one hour, provided you submit your request within quality company time and let us utilise the bank verification system link to immediately verify your bank account information online. If you choose to send us copies of your bank statements we can offer a decision in as little as one company day.
If you are applying for a Larger Business Loan ($100K or more) we may be likely to provide you with conditional pre-approval within about six hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this may be quicker depending on the circumstances of each application. Certain deals have been approved within 24 hours.
The quickest method for you to apply is make sure you apply during normal company hours, and allow us to use our advanced bank verification system to instantly confirm your bank details online. If you opt to upload the copies of bank statement, it will take a little longer.
How soon will I receive the cash?
For the Small Business Loan ($5K up to $100,000) we usually offer a response in one hour if you submit your request in standard business times and you allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you choose to upload copies of your banking statements we can offer a decision in just 1 business day.
If you are applying for Larger Business Loans ($100K or more) We may be in a position to offer you with pre-approval conditional to your application in about 6 hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this may be quicker depending on the particular circumstances of each application. Some transactions have received approval within 24 hours.
The fastest way is to make sure you apply during normal business hours. You can also permit us to use the advance bank verification to verify your bank account information online. If you send us the copies of bank statements, it will take a little longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. If you apply for a particular amount, we look at a variety of aspects to determine the well-being of the business and the level of repayments that your business can support. The amount you receive from your loan will depend on the specific circumstances that are unique to your business.
When you make an application for a certain amount, we look at a range of factors to determine the health of your business and the level of payments your company can afford. The amount you receive from the loan will be determined by the particulars the business.
Fees & repayments
How much do you charge for an company loan?
When you apply for business loans with us business loan, we will assess the risk assessment of your company and offer an individualised offer including the loan amount, the terms and the interest rates. This business loan is a loan that is priced upfront so you will know the exact amount payable including any charges, interest rates or fees.
What is the basis for the rate I’m charged?
Interest rates for business loans rates differ based on various factors like the amount of money borrowed, what business assets the money will be used for as well as the field the business is in, how long the company has been operating, whether the company has enough cash flow to fund the loan, and the general well-being and creditworthiness of the business.
What are the charges?
There aren’t any hidden charges for our company loans. You’ll know exactly how much you’ll be required to pay, and when, starting from day one. There’s no compounding and no additional fees (as long as you make your payments on time).
We don’t charge an application fee. You are able to get a cash loan with absolutely no upfront cost and no commitment to apply.
The Origination Fee is the cost associated with establishing and managing the loan. You are only charged this cost if you take out the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I pay off the loan early?
You can decide to repay the entire amount of your loan at any point in time.
If you do decide to pursue this option, please talk to one of our helpful company lending specialists. The professionals will offer you with repayment details and an early payment figure. The figure will be calculated as the sum of the principal balance plus any accrued interest as of the date of early payout and 1.5 percent of the principal remaining and any fees that remain unpaid.
What are the repayment methods?
In order to help you avoid missing payments and to work with your cash flow routine, we provide payments that are either weekly or daily. These are automatically withdrawn from your nominated business account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and making it clear the ways we gather, use, exchange and secure your information, is of paramount importance and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our commitment to customer security and privacy. We use an advanced bank verification system to immediately verify your bank account information online. This allows us to offer quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when a business owner uses the assets they have to secure the loan. The asset can be either an individual asset, such as the family home, or it could be a business asset such as a truck or piece of equipment.
The vast majority of banks, even the banks with the biggest size, prefer to guarantee loans against assets. If you’re having trouble paying back the loan, then your assets could be taken over by the lender. In essence it’s an opportunity to secure additional financing making use of the value of what you already have.
Do I require security for a business loan?
For loans up to $150,000 the requirement for asset security is not required before you can access the money, however we do require a personal guarantee. In the event that you fulfill the terms of your loan (as stated in the loan contract) Asset security is not required. For loans that exceed $150,000, generally, you can get the option of a personal guarantee and security in the form the charge of assets.
